Marketmind: Beijing tries new ways to lift moribund markets

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Chinese blue chips were enjoying a rare rally on Monday after Beijing rolled out more measures to support the market. These included halving the stamp duty on stock trading, slowing the pace of new offerings and approving the launch of 37 retail funds to invest in stocks. While hardly the sort of massive fiscal stimulus investors crave, it was welcome that Beijing at least understood that assistance was needed, and stocks gained around 2.5%.

The German share price index DAX graph is pictured at the stock exchange in FrankfurtChinese blue chips were enjoying a rare rally on Monday after Beijing rolled out more measures to support the market.

While hardly the sort of massive fiscal stimulus investors crave, it was welcome that Beijing at least understood that assistance was needed, and stocks gained around 2.5%. If sustained that would be the second-biggest daily gain this year, which just goes to show how moribund the market has been. Troubles in the property sector were highlighted when China Evergrande shares resumed trading with a drop of 80%. A stock that was one priced above HK$30 is now 39 cents.

Elsewhere, Wall Street stock futures are a shade firmer with the market seemingly relieved that Fed Chair Powell wasn't out-and-out hawkish. Then again, it wasn't exactly dovish for him to acknowledge the economy was running stronger than the Fed had expected: The latest Atlanta Fed GDPNow estimate for this quarter is 5.9%.

 

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